Time value of money-continuous compounding

Assignment Help Finance Basics
Reference no: EM1329305

You make deposits of $2 each year for 30 years. The rate of interest that will prevail is 10 percent for the first 20 years and then 12 percent for the remaining period. If the interest rate is compounded continuously, what is the present and future value of these deposits.

Reference no: EM1329305

Questions Cloud

Disadvantages are there to dereferencing of pointer : What drawbacks are there in implicit dereferencing of pointers, but only in certain contexts? For example, consider the implicit dereference of a pointer to a record in Ada when it is used to reference a record field.
Important information about replacement chain : Important information about Replacement Chain - Should the firm replace its old knitting machine, and if so, which new machine should it use?
The volatility of demand : Assume that the volatility of demand on your service delivery system is much higher than that on your manufacturing production system.
Observability and accuracy of real interest rates compared : Illustrate what does this tell you about the observability and accuracy of real interest rates compared to nominal interest rates.
Time value of money-continuous compounding : You make deposits of $2 each year for 30 years. The rate of interest that will prevail is 10 percent for the first 20 years and then 12 percent for the remaining period.
Conduct a work process improvement analysis : Conduct a work process improvement analysis and make recommendations for improvement in various areas of the supply chain. Use effective communication techniques.
Write the program in c++ language : Write a program to read a student's number, his or her old grade point average, and old number of course credits (e.g., 31479, 3.25, 66) and to then print these with appropriate labels.
Question on time series forecasting : The following table describes the past two years of quarterly sales information. Suppose that there're both trend and seasonal factors and that the seasonal cycle is one year. Use time series decomposition to forecast quarterly sales for the next ..
The characteristics of the data : Conceptual Modeling looks at how the data is structured and what the characteristics of the data are.

Reviews

Write a Review

Finance Basics Questions & Answers

  Objective type questions on payback period and npv and irr

Objective type questions on payback period, NPV and IRR and What is the internal rate of return that Turnbull can earn on this project

  Evaluation of fixed operating cost for achieving target

Computation of fixed operating cost for achieving target profits - How large can Rogers' fixed operating costs be if he is to meet his profit target?

  Explain the various methods of stock valuation theory

Various methods of Stock Valuation theory and dividend policies and Stock Valuation: Why does the value of a share of stock depend on dividends?

  Computation of value of bond

Computation of value of bond and Ccalculate the expected return on the stock of Mitro Corporation

  Multiple choice questions on inflation

Multiple choice questions on Inflation, EOQ and Basic accounts - Rocky Mountain Utilities then uses the coals to generate electricity, which it makes to its customers

  Describe portfolio management

Describe Portfolio Management and Write a brief outline covering the core idea in the Markowitz

  Why does money have a time value

Business Finance – Final Exam BUS401(2010A):  Why does money have a time value? Your answer must be supported with examples and academic citations.

  Sketching the yield curve for series of bonds

In excel, calculate interest rate for each bond. In excel, sketch the yield curve for this series of bonds.

  Describes common stock or preferred stock

Classification of preferred stock and common stock and check whether the characteristic listed below describes common stock (CS) or preferred stock (PS).

  Calculation of yield to maturity on bond with given data

Calculation of yield to maturity on bond with given data and The bonds had a coupon rate of 4.5%

  Computation and capital budgeting decision based on irr

Computation and capital budgeting decision based on IRR and should the project be accepted if it has been assigned a required return of 9.5%

  Define strategic planning

How would you explain strategic planning? What are the differences between strategic and financial planning? What financial problems may an organization face when implementing their strategic plan?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd